Drive Car of the Year 2026 – Best Small SUV Under $60K finalists announced

Small SUVs are big business for car companies these days, but not all are created equal. After the first round of deliberations, judges have selected three finalists that will compete for the title of the 2026 Drive Car of the Year Best Small SUV Under $60K.

Looking to secure its third category award win in a row is the Hyundai Kona, now offered with more choice of hybrid variants than ever before, and the same great blend of space, technology, fuel efficiency, and driving refinement.

For 2026, the price cap on the cheaper of the Drive Car of the Year Small SUV categories has increased from $50,000 to $60,000 (plus on-road costs) to reflect changes in the market, allowing the Kona Electric, priced from $54,000 before on-roads, to compete for the first time in this generation.

However, it is the top-of-the-range Kona Hybrid that's our pick of the bunch for most buyers, the $48,700 plus on-roads Hybrid Premium N Line, which mixes the longest list of features with the sporty N Line package.

Standard features include dual 12.3-inch interior screens with wireless Apple CarPlay/Android Auto and navigation, adaptive LED headlights, 18-inch alloy wheels, a sports body kit, leather and Alcantara trim, power-adjustable heated and ventilated front seats, heated outboard rear seats, a heated steering wheel, an eight-speaker Bose stereo, power tailgate, and clever tech such as blind-spot cameras for lane changes.

The Kona's 1.6-litre petrol engine and electric motor may not be the most powerful here – producing 104kW combined – but at 4385mm long, 1825mm wide, 1585mm tall, and 2660mm in wheelbase, it's a well-sized compact SUV.

Nissan's compact Qashqai is no stranger to a Drive Car of the Year contest, winning an earlier version of this category in 2023 on the debut of the current-generation, petrol-powered model.

Since it last competed, the Qashqai has been treated to a styling update, alongside fresh interior materials and new tech features, including wireless Android Auto and phone-app connected services.

For the first time, the Qashqai e-Power hybrid is eligible to compete in this category, and the increase in the price cap from $50,000 to $60,000 allows the all-you-can-eat Ti-L e-Power ($52,365 plus on-roads) to compete for victory.

It means standard features include dual 12.3-inch interior displays, wireless Apple CarPlay, satellite navigation, adaptive LED headlights, 20-inch alloy wheels, power-adjustable heated front seats, a heated steering wheel, quilted leather upholstery, a head-up display, a panoramic glass roof, and 10-speaker Bose premium audio.

Unlike most other hybrids – which can drive their wheels on petrol or electric power – the Nissan uses its 1.5-litre turbo-petrol engine as a generator to power the 140kW electric motor driving the wheels, for a more electric-car-like experience without the hassle of plugging in.

One of the more generously-sized small SUVs in its class – at 4425mm long, 1835mm wide, 1625mm tall, and 2665mm in wheelbase – the Qashqai offers plenty of cabin space for adults, and majors on a mix of soft finishes and easy-to-use switchgear.

The Kia EV3 is the first electric car to be selected as a finalist for the more affordable of the two Drive Car of the Year Best Small SUV awards, and it's for good reason.

Distilling the acclaimed DNA of the EV9 seven-seater into a compact package, the EV3 is a spacious SUV built from the start as an electric car, and with Kia's latest styling and technology inside and out.

At 4300mm long, 1850mm wide, 1560mm tall, and 2680mm in wheelbase, the EV3 is shorter than the other two finalists nose to tail, but packs more space between its front and rear wheels for – on paper at least – a roomier cabin.

The $60,000 price cap buys the second-most expensive variant in the line-up, the Earth Long Range, priced from $58,360 plus on-road costs with an 81.4kWh battery pack good for a range-anxiety-reducing 563km of claimed WLTP driving range.

With a front-mounted 150kW/283Nm electric motor, it's the most powerful car among these finalists, and trick EV tech such as vehicle-to-load for powering external electrical devices impresses.

Standard features in this Earth grade include 19-inch alloy wheels, reflector LED headlights, dual 12.3-inch cabin screens with wireless Apple CarPlay/Android Auto and navigation, a power-adjustable driver's seat, heated and ventilated front seats, a heated steering wheel, leather-look upholstery, a power tailgate, dual-zone climate control, and a six-speaker stereo.

Read more about the Kia EV3 here.

The Drive Car of the Year Best Small SUV Under $60K winner will be announced in February 2026.

Small SUVs play different roles for different buyers – a first car, a last car, the primary family car, a second car as a city runabout – so their manufacturers are pulled in a host of directions.

Finalists – and the winner – in this category need to be small on the outside but roomy on the inside, loaded with features and technology but not daunting or overly complicated, safe, frugal on fuel or electricity, easy to drive, and most of all, good value for money.

Recognising that Aussies are paying more than ever for new cars, we've increased the price cap on this category up to $60,000 before on-road costs – from $50,000 – to allow more headroom in what can compete, and to enable cheaper models to put an even better foot forward.

The Hyundai Kona has won this award for two years running (2024 and 2025), preceded by the Nissan Qashqai in 2023, and the Skoda Kamiq in 2021 and 2022.

Drive’s rules require that, for a car to be eligible, it must:

1. Be all-new (or significantly updated), or a winner of its category in the preceding awards year.
2. Be on sale with customer deliveries commenced by 1 December 2025.
3. Retail examples be made available for Drive to road test before that cut-off date.
4. Pricing cut-offs exclude discounts and limited-time offers.

Eligible to compete are models with an RRP of less than $60,000 before on-road costs – even if the drive-away price pushes above this mark – and as with any existing DCOTY category, cars must be all-new or significantly updated since they last contested for the award win.

Some of the contenders in this category offer model variants that are priced above $60,000 before on-road costs. Only trim grades that fall below the price cap will be eligible.

As one of the most competitive segments in the new-car market, there were plenty of other small SUVs that didn't make the finalist cut.

The impressive MG S5 EV ran close to a spot among the top three, but doesn't quite offer the cabin luxury to compete, while the judges felt the Skoda Elroq was better represented in its slightly larger form, the Enyaq, in other Drive Car of the Year categories.

The Toyota Corolla Cross SUV's recent update hasn't done enough to close the gap in practicality, quality, and driving refinement to rivals, the Renault Duster is a funky choice but ultimately lacking in luxury and tech, and the Volvo EX30 – now in contention due to the higher cap – is too cramped inside and overly complex to interact with.

Other cars we considered, but elected to pass on as finalists based on previous testing, range from the Zeekr X and Chery C5 to the new Mitsubishi ASX.

The winner of the Drive Car of the Year 2026 – Best Small SUV Under $60K will be announced in February 2026.

An overall Drive Car of the Year award will be awarded in February 2026.

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Alex Misoyannis has been writing about cars since 2017, when he started his own website, Redline. He contributed for Drive in 2018, before joining CarAdvice in 2019, becoming a regular contributing journalist within the news team in 2020. Cars have played a central role throughout Alex’s life, from flicking through car magazines at a young age, to growing up around performance vehicles in a car-loving family. Highly Commended - Young Writer of the Year 2024 (Under 30) Rising Star Journalist, 2024 Winner Scoop of The Year - 2024 Winner

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